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Friday, April 06, 2001, updated at 21:42(GMT+8)
Business  

Asset Management Giant Promotes Asset Sales

China Huarong Asset Management Corporation said Friday that it plans to introduce 134 asset packages to domestic and overseas investors attending an ongoing trade fair in Xi'an, capital city of northwest China's Shaanxi Province.

At the five-day Investment and Trade Fair for Cooperation Between Eastern and Western China, Huarong aims to sell 12.1 billion yuan in assets selected from its 70,000 debtor companies to investors, according to Li Xiaopeng, vice president of the asset company.

Huarong is currently the creditor, shareholder or owner of the real estate of these companies, Li said.

These packages covers a multitude of industries, including textiles, machinery and electronics, scattered across the country, Li said.

Li said he believes that investors would be very interested in Huarong's assets as many of the fields are labeled as key sectors enjoying favorable state policies.

What's more, Huarong holds the lion's share of these companies' stocks, which means the buyer would have big decision-making power in the companies' future reform if it purchases Huarong's assets and becomes a shareholder, Li said.

China's regulations on asset management companies (AMCs) stipulate that AMCs can dispose of bad assets through sales, transfer, restructuring or other means, and after debt-to-equity swaps, AMCs could enjoy shareholder's rights in the company.

Huarong, the largest AMC in China, acquired 407.7 billion yuan of non-performing assets stripped from the Industrial and Commercial Bank of China two years ago.

By 2000, Huarong had wiped out 7.86 billion yuan of assets, and retrieved capital totaling 3.28 billion yuan, including two billion yuan in cash.







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China Huarong Asset Management Corporation said Friday that it plans to introduce 134 asset packages to domestic and overseas investors attending an ongoing trade fair in Xi'an, capital city of northwest China's Shaanxi Province.

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